Credit Cards

In case you haven’t heard, there’s a new bankruptcy bill making its way through Congress. Read up on it here, here and here.

Kevin Drum points out that:

“Bottom line: credit card companies now make half their profits from penalties and late fees. They actively seek out customers who are likely to miss payments and end up in a penalty fee spiral, and they make a fortune from them.”

“And where does the bankruptcy bill come into this?

Credit card companies want the ability to make risky loans, but they also want federal protection that protects them from bearing the risk that goes along with making those loans. That’s a pretty cushy setup, as long as you can buy yourself enough politicians to make it happen. Apparently they can.”

He also writes here about amendments offered by Democrats, that Republicans voted down, and other details:

“The poor get shafted, the very real crisis of medical bankruptcy is ignored, the rich are allowed loopholes that let them off the hook, and credit card companies can continue on their merry way knowing they won’t have to pay the price for their own folly.”

I stopped using credit cards several years ago. It’s AMAZING how good it feels to be free of monthly payments and interest charges. Why would I want to contribute to the machine? If I can’t just pay for something I just don’t buy it. (Yes, I drive an old beater.)